Absoloutely. I wouldn't want to see a catastrophy in the x-prize set back progress like it has the space shuttle program.

However, I was under the impression that most teams did fairly exhaustive testing of their engines before loading them into the ship. Haven't scaled done this?

Sure, they wouldn't have tested it to the full burn time, but the thing is that at some point they're going to have to go beyond their testing. Otherwise the actual x-prize flight will just be another test.

The beauty of the XPRIZE is that instead of just one NASA which grinds to a halt with every failure, there are many independent teams which will continue on even if there are some catastrophic failures.

Also keep in mind that Rutan's history regarding safety has been to "Question Everything" and Never shoot the messenger". Some of those who have "Questioned" at NASA have been "shot".

_________________"Giving money and power to government is like giving whiskey and car keys to teenage boys."
P.J. O'Rourke